Managing Your Money

MANAGING YOUR MONEY
2.3

Lack of money—just like lack of time—can lead to stress, which will use up energy you need for studying and other commitments. Because college is expensive (even though two-year college is the least expensive of them all), and most students have limited financial resources, a budget for college is a must. As with time and energy, you have control over how you spend money. By using the tools and strategies in this section, your level of control over money will increase.

Let’s begin by learning how to budget. A budget is a spending plan that tracks all sources of income (financial aid, wages, money from parents, etc.) and expenses (rent, tuition, books, etc.) during a set period of time (weekly, monthly, etc.). Creating and following a budget will allow you to pay bills on time, cut costs, put some money away for emergencies, and finish college with as little debt as possible.